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| The Tax Publishers2020 TaxPub(DT) 1781 (Kol-Trib) INCOME TAX ACT, 1961
Section 43B
Leave encashment claim was allowable on payment basis and same could not be allowed/accepted on mere provision made for employees.
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Business disallowance under section 43B - Tax, cess, etc., - Provision for leave encashment claim of employees - Deduction on payment or accrual basis
Revenue's substantive grievance seeks to reverse the CIT(A)'s action allowing leave encashment claim(s) on payment basis. Revenue's only case was that the CIT(A) had granted excess relief exceeding amount of disallowance made by the AO. Held: DR failed to dispute the CIT(A)'s identical lower appellate discussion in these three assessment year(s) has gone by actual payments only under section 43B(f). The CIT(A) had taken note of the jurisdictional High Court's decision in Exide Industries Ltd. v. UOI (2007) 292 ITR 470 (Cal) : 2007 TaxPub(DT) 1321 (Cal-HC) quashing foregoing statutory provision itself as ultra vires and its operation stayed in Apex Court's to conclude that assessee's mere provision of leave encashment does not deserve to be accepted. There was neither any legality nor irregularity in the CIT(A)'s action under challenge.
Followed:Exide Industries Ltd. v. UOI (2007) 292 ITR 470 (Cal) : 2007 TaxPub(DT) 1321 (Cal-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12 to 2013-14
INCOME TAX ACT, 1961
Section 43B
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